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Circular economy seems to offer abounding opportunities for companies that are seeking to optimize their business practices while reducing the environmental burden. Circular economy therefore is often seen as a stepping-stone towards sustainability. However, to ensure the transition from linear to circular economy in a sustainable way, a shift requires implementation of not only financially beneficial circular strategies, but also environmentally and socially valuable ones. The challenge for companies is to understand how a particular circular initiative in their business context contributes to sustainability and what elements of sustainability have to be assessed prior to the initiative implementation. This paper illustrates how an indicator-based sustainability screening tool for circular economy initiatives can guide companies in their decision making towards a more sustainable circular initiative choice. In addition, the paper highlights challenges of measuring sustainability in a circular economy context.

Implications of developing a tool for sustainability screening of circular economy initiatives